The Federal Government was urged by the Crude Oil Refiners Association of Nigeria (CORAN) to sell its shares from the Port Harcourt, Warri, and Kaduna refineries under management by the Nigerian National Petroleum Company Limited (NNPC) in order to support modular refineries with the proceeds. This is expected to provide a lasting solution to the problems of fuel scarcity in the country.
Eche Idoko, CORAN’s Publicity Secretary, pointed out that local refining is key to solving the problems of fuel scarcity; for instance, “the Port Harcourt refinery has not even started producing, following six postponements and more than $1 billion spent on rehabilitation.”
Idoko recommended an intervention fund for modular refineries to allow access to credit and government stakes. He also underscored the advantages of supporting modular refineries, which can refine 100,000 barrels daily, enough for local consumption and export.
NNPC spent over N9.3 trillion on petrol imports in 2023; however, there remain huge deficits due to subsidy payments.
In this regard, CORAN advocates for the empowerment of modular refineries themselves, as well as other forms of self-sufficiency, while simultaneously creating enabling environments for private sector participation, like those witnessed in Saudi Arabia and the USA.
